Minimum retail price

The minimum retail price is the lowest price at which a product may be sold to the end buyer, set by the seller or by law, below which a sale causes a loss or violates trade rules.

How the minimum retail price works

The minimum retail price (hereinafter — MRP) can be twofold: commercial or regulatory. A commercial MRP is set by the seller or manufacturer to protect margin and brand image. A regulatory MRP is defined by state acts for certain product categories, for example alcohol, tobacco or some medicines; violating it entails administrative sanctions.

• Commercial MRP: calculated based on cost price, marketplace commissions, logistics, advertising expenses and desired profit.
• Regulatory MRP: imposed by law and must be observed regardless of a seller's internal policy.

In practice sellers combine both approaches: they comply with regulatory limits and set their own commercial MRP on top to ensure profitability.

Why a seller needs an MRP on Kaspi.kz

For a seller on Kaspi.kz the MRP is a tool to manage risks and profit. Without a minimum price it's easy to end up in loss-making sales, especially with aggressive competition and automatic price reductions by rivals.

• Preserving margin: The seller accounts for commissions, logistics and returns. Example: cost price 9 000 tenge, marketplace commission about 12%, average delivery 600 tenge, advertising expenses 400 tenge. For a target margin of 20% the MRP should be at least 9 000 / (1 - 0.20) plus commissions/logistics, totalling roughly 12 500–13 000 tenge.
• Avoiding dumping: Competitors may lower the price below cost to win the product card. Having an MRP allows you to automatically decline orders or opt out of promotional campaigns when the price falls below the set threshold.
• Compliance with laws: For regulated goods, checking MRP prevents fines and listing blocks.
• Managing promotions and discounts: Knowing your MRP lets you plan discounts so they remain profitable — for example a temporary 10% reduction instead of sliding into negative margin.

Examples of MRP calculation and real cases on Kaspi.kz

Below are several typical scenarios with concrete numbers and outcomes that sellers in Kazakhstan encounter.

Example 1. Electronics — protecting margin with high commission

1. Cost price: 35 000 tenge.
2. Kaspi.kz commission (approximate for the category): 12% = 4 200 tenge.
3. FBS/pickup delivery: 800 tenge.
4. Advertising expenses: 1 200 tenge.
5. Target margin: 15%.

Calculation: total direct costs = 35 000 + 800 + 1 200 = 37 000 tenge. To secure a 15% margin, divide costs by (1 - 0.15): 37 000 / 0.85 ≈ 43 529 tenge. Add commission on top (≈12% of selling price) — iterative or approximate calculation gives a recommended MRP around 48 000–50 000 tenge to safely cover all expenses and achieve the target margin.

Example 2. Low-cost household goods — tight margins and promo risk

For goods with low absolute margins even small discounts or cashback offers may turn a sale into a loss. Suppose:

• Cost price: 1 200 tenge.
• Commission: 10%.
• Delivery: 300 tenge.
• Advertising: 100 tenge.
• Target margin: 10%.

Direct costs = 1 600 tenge. To get 10% margin: 1 600 / 0.9 ≈ 1 778 tenge. Adding commission, a safe MRP would be around 2 000 tenge. Setting the MRP forces the seller to restrict participation in platform promos that push the final price below 2 000 tenge.

Real case. Competing for Buy Box with different pricing strategies

One seller lowered price aggressively to win Buy Box but repeatedly sold below cost and accumulated losses. Another seller set a strict commercial MRP and focused on service, faster shipping and bundled offers. Over time the second seller preserved margin and maintained steady sales, while the first burned through inventory without sustainable profit.

Practical tips for setting and controlling MRP

• Keep a clear calculation template: list cost price, logistics, average return rate, expected advertising spend, marketplace commission and desired net margin. Save this template per SKU.
• Factor in returns and warranty costs as a percentage of sales — these hidden costs often erode margin.
• Use price floors in your seller dashboard and enable automatic rejection or alerts for orders below the MRP.
• If you use ERP or repricing tools, synchronize MRP fields via API to avoid manual mismatches.
• Test small promo experiments: set a temporary, limited stock promotion and monitor unit economics closely instead of blanket discounts.
• Document regulatory MRPs for controlled categories and prioritize them over commercial settings.

Common mistakes and how to avoid them

• Ignoring commissions or cashback: Many sellers forget to include marketplace fees, cashback or other incentives in calculations — always model final payout to the seller.
• Using a flat-percentage markup: A simple markup over cost doesn't account for fixed logistics or advertising sums; use a mixed model (percentage + absolute costs).
• Not updating prices: Costs change (exchange rates, shipping, supplier prices). Review MRPs regularly and after major cost events.
• Promos without controls: Running platform-wide promotions without price floors leads to unintended losses — impose caps on maximum discount or exclude certain SKUs.
• Overlooking regulatory requirements: For regulated products always cross-check legal MRPs and keep proof of compliance.

Control and integration taking real business into account

For businesses selling many SKUs, manual MRP management becomes impractical. Recommended approach:

• Centralize pricing logic in ERP or a pricing engine. Store cost components and target margins per SKU and calculate MRP automatically.
• Integrate with Kaspi.kz via API to push MRP fields and receive alerts about pricing conflicts or attempted sales below floor.
• Implement monitoring dashboards that show attempts to undercut MRPs, frequency of price violations and profitability per SKU.
• Train customer service and sales teams on the rationale for MRP so they can explain pricing to buyers and handle disputes.

MRP is not just an administrative restriction — it’s a strategic lever. Properly set and controlled, it protects margin, brand value and legal compliance while still allowing tactical promotions and competitive positioning on Kaspi.kz.